Page 17 - CityofSouthlakeFY26AdoptedBudget

deliberate planning, prudent resource management, and an unwavering commitment to delivering high-
value, cost-effective services. The FY 2026 Adopted Operating Budget continues that commitment and
has been developed to achieve the following goals:

Goal: Strategic Alignment and High-Quality Service
Delivery Budget Overview

Our first goal is to ensure that every dollar in the FY 2026 budget advances the City Council’s strategic
priorities and supports exceptional service delivery. Figure 1, the City of Southlake Strategy Map, remains
our compass—clarifying focus areas, objectives, and values that guide daily operations.

Consistent with prior years, this budget sustains high-value programs across all four Focus Areas—Safety
& Security, Infrastructure & Development, Partnerships & Volunteerism, and Performance Management
& Service Delivery—without reducing any service levels. Although the General Fund introduces no new
programs for FY 2026, targeted enhancements are funded through special revenue sources and other
dedicated funds. These investments allow us to refine existing services, incorporate best practices, and
pursue efficiency gains while maintaining the award-winning, accredited standards our residents and
businesses expect.

In short, the FY 2026 budget continues to align resources with strategy, protect service quality, and
position Southlake to meet emerging needs through continuous improvement. Detailed information on
these strategic investments is provided later in the Budget Overview section.

Goal: Alignment with Financial Policies and Financial
Management Guiding Principles

The operating budget is structurally balanced and reflects the City’s commitment to quality and
sustainable financial management through:

Structural balance and strong net revenues. Maintaining structural balance is foundational to Southlake’s
budgeting standards. The FY 2026 budget once again matches recurring expenditures with reliable
revenue streams, producing strong net revenues that reinforce long-term stability and preserve capacity
for strategic investment. By protecting this balance, the City can sustain essential services, absorb
economic shifts, and act decisively when new opportunities emerge.

Optimum fund balances. Healthy reserves strengthen the City’s ability to respond to unexpected events
and revenue fluctuations. In accordance with policy, the FY 2026 budget provides for optimum fund
balances across all operating funds. Financial policies can be found in the Appendix of this document.
As an example, per the Fund Balance Policy, the undesignated fund balance in the General Fund should
range between 15% and 25% of operating expenses. For FY 2026, 25.6% of General Fund operating
expenses are reserved for unanticipated or emergency needs. See Figure 2 for a full picture of the City’s
reserves and learn more in the Multi-Year Operating Plan section of this document.

Strategic use of debt and cash funding of capital projects. Debt management is one of Southlake’s
core financial guiding principles. The City’s approach blends rapid amortization with aggressive pay-as-

FY 2026 City of Southlake | Budget Book 17